Heeeeeeeres CUPE !!!!

[Kip Powick]

Concerned the country is on the brink of losingits national airline, Canada's largest union is calling on the prime minister to set up a special committee of cabinet to deal with the Air Canada crisis.

In a letter to Prime Minister Chrétien, the Canadian Union of Public Employees points out the federal government has promised support to the Toronto hospitality sector to ease the impact of the SARS outbreak, but for the airline industry there has been nothing.

"Air Canada's finances have gone from bad to worse and still we hear nothing from the government," said CUPE National President Judy Darcy. "This is the same government that sits silent while airline executives, bankruptcy judges and lawyers for creditors shape the future of Canada's airline

industry. Who is representing the public interest?"

CUPE, which represents 8,300 Air Canada cabin personnel, says a special committee of cabinet is needed to pull together a coherent response from the federal government to the Air Canada crisis. "There are a host of ministers responsible for different aspects of the problem - David Collenette, John Manley, Jane Stewart, Elinor Caplan - and

they are all competing with each other to see who can do the least," said Darcy.

In addition to the Transport Canada, the Department of Finance, Human Resources Development Canada and the Canada Revenue and Customs Agency are all dealing with different aspects of the issue.

Pamela Sachs, president of the Air Canada Component of CUPE, said, "Our members are getting fed up petitioning different ministers to do their jobs. The red ink is rising, our jobs are in jeopardy, our pensions at risk and members who have been laid off are being denied benefits. The whole situation is a mess and what do we hear from the federal government? A deafening silence."

CUPE is calling on the federal government to provide Air Canada with bridge financing to help it weather the SARS crisis and to reduce the burden of user fees for airlines and passengers. It is also demanding immediate

action to protect pensions and ensure that flight attendants who have been laid off get their full employment insurance benefits.

[dagger]

Unless Air Canada moves its HQ and its hub to Shawinigan, I doubt CUPE is going to get much of a hearing. Now there could be a time and place for the feds to do something, like lower fees and taxes, but it's a good bet they won't do anything until the other stakeholders - most notably the unions - give at the blood bank.

[handyman]

"This is the same government that sits silent while airline executives, bankruptcy judges and lawyers for creditors shape the future of Canada's airline industry. Who is representing the public interest?"

Robert Milton is! He runs the show…he should pay the bill.

Why should tax-payers cough up the dough when the business plan fails? Airlines in North America and Europe are having a difficult time competing with the low-cost carrier but they continue to throw away millions and sometimes billions trying. It doesn’t work so change the plan.

[Guest Airlifter]

One gets the impression that the unions have been dragging this out in the belief that the government will step in with a bailout.

This is one hell of a gamble with the livelyhood of so many at stake...??!!

[Guest givemeabreak]

"This is the same government that sits silent while airline executives, bankruptcy judges and lawyers for creditors shape the future of Canada's airline

industry. Who is representing the public interest?"

CUPE should be by realizing that getting paid more than any pilot (f/o) in the company is wrong.

[LongTimer V]

When i was a kid in high school(over thirty years ago) i visited the old D.C. 8 hanger.I wanted to be a aircraft mechanic.Walked around and chatted with the boys,and almost every guy there told me"son why don't you try the ramp first,the money is better less responsibilities,and if you still want to be a mechanic,then come on over.Well i like the ramp so much i stayed.We all make choices.

[Guest lorraine]

Counting on the government to solve business problems is probably something we don't want to do. Otherwise it would still cost $600 to go from Calgary to Vancouver!

[Guest kevbert]

"...he whole situation is a mess..."

Hmmm...if the whole situation is in such a mess, shouldn't you get involved? Waiting for the government to bail you out is suicide.

Someone should also inform Pam that Air Canada IS A BUSINESS and therefore exists to make money, not for the social good. It's not there to make sure unionized workers have jobs, it's there to make a return on those who have invested in it.

[proview]

Regarding the Union request (suggestion, demand) that the government step in to directly support Air Canada:

1. Unions are required to act in what they see as the best interests of their members. No one should be surprised or take offense that they are now asking for government help. The Canadian Autoworkers, for example, have for a long time been promoting re-nationalization of Air Canada.

2. It has long been felt that a strong national airline is important to the country, and that the government would never permit Air Canada to fail. Many people still hold this view.

3. The current crises has, however, changed the political landscape. Fewer people now consider the airline indispensible to the national good. In fact, the government itself has suffered politically every time Air Canada runs into problems. Perhaps many government members would be quite happy if Air Canada just "went away".

4. The traditional forces may prevail this time, but it is not obvious.

These are my opinions as an observer of the industry. I am not employed in the airline industry.